AUD/NZD next target 1.07500

After a long period of time when AUD/NZD was somehow flat, yesterday after RBNZ policy statement this currency pair finally triggered a BUY signal on breaking the resistance at 1.05600. In the past 10 weeks, AUD/NZD traded in a sort of a range between 1.05600 and 1.03200. On January 31st, AUD/NZD had a failed attempt to break the support and is rallying since then.

Breaking 1.05600 resistance gave a strong bullish signal on the daily chart and the next resistance to look at is 1.07500. The RSI at 66 is also signaling a strong bullish sentiment but the overbought conditions on lower time frames, like 4h and 1h, is suggesting a pullback might occur this week.

The ideal trade would be to see AUD/NZD retesting the 1.056000 level which should provide support and resuming the rally from there, should target 1.07500 within the next 4 to 5 weeks.